$1.5M PHH Mortgage Corp. misleading default notices class action settlement

PHH Mortgage Corp. agreed to a $1.5 million class action lawsuit settlement to resolve claims that it violated federal and state debt collection laws by sending misleading default notices.

The settlement benefits PHH-serviced residential mortgage borrowers who were sent one or more notices of default between Dec. 18, 2022, and Dec. 15, 2025, for properties in the United States (FDCPA Class) or California, and between Jan. 14, 2021, and Dec. 15, 2025, for properties in North Carolina.

PHH Mortgage is a mortgage servicer that offers services to both homeowners and investors. PHH services loans for more than 1.5 million borrowers, according to the company.

According to a class action lawsuit, PHH Mortgage violated the federal Fair Debt Collection Practices Act (FDCPA) and other state laws by sending misleading default notices to borrowers.

These notices allegedly contained false threats that PHH would immediately accelerate and foreclose on loans if the borrower did not cure the default by a certain deadline. In reality, PHH could not legally accelerate or foreclose on these loans until they were at least 120 days delinquent, the plaintiffs contend.

PHH Mortgage has not admitted any wrongdoing but agreed to a $1.5 million class action settlement to resolve the allegations.

Under the terms of the PHH Mortgage settlement, class members can receive a cash payment based on the number of loans they have and the delinquency of each loan at the time PHH began servicing the loan. Class members with multiple loans may receive multiple payments.

The deadline for exclusion and objection is May 5, 2026.

The final approval hearing for the PHH Mortgage settlement is scheduled for June 9, 2026.

No claim form is required to benefit from the PHH Mortgage settlement. Class members who do not exclude themselves will automatically receive settlement benefits.

Who’s Eligible

For the FDCPA class, borrowers on residential mortgage loans secured by mortgaged property in the United States whose mortgage loans were serviced by PHH and to whom one or more notices of default were sent between Dec. 18, 2022, and Dec. 15, 2025.

For the California class, Borrowers on residential mortgage loans secured by mortgaged property in California whose loans were serviced by PHH and to whom one or more notices of default were sent between Dec. 18, 2022, and Dec. 15, 2025.

For the North Carolina class, borrowers on residential mortgage loans secured by mortgaged property in North Carolina whose loans were serviced by PHH and to whom one or more notices of default were sent between Jan. 14, 2021, and Dec. 15, 2025.

Potential Award

Varies.

Proof of Purchase

N/A

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

05/05/2026

Case Name

Williams, et al. v. PHH Mortgage Corporation, et al., Case No. 3:25-cv-00144-KDB-UMJ, in the United States District Court for the Western District of North Carolina

Final Hearing

06/09/2026

Settlement Website

WilliamsPHHSettlement.com

Claims Administrator

PHH Settlement Administrator
P.O. Box 1468
Baton Rouge, LA 70821
[email protected]
844-329-3048

Class Counsel

Scott C. Harris
BRYSON HARRIS SUCIU & DEMAY PLLC

Edward H. Maginnis
MAGINNIS HOWARD

Defense Counsel

Zachary A. Madonia
C. Bailey King
BRADLEY ARANT BOULT CUMMINGS LLP